15th Apr 2014 14:09
LONDON (Alliance News) - Jupiter European Opportunities Trust PLC Tuesday said it outperformed its benchmark between the start of December and the end of February, boosted by its exposure to the healthcare sector.
In a statement, the trust's fund manager said its net asset value per share excluding income and expenses rose by 7.8% to 452.89 pence, which compares with a rise of 2.8% for the FTSE World Europe ex-UK Total Return Index, over the same period.
Novo Nordisk was the standout performer after reporting stronger than expected full year results, the trust said, adding that the company's diabetes care products are much in demand the world over, with the highest reported growth coming from North America and China.
The trust's fund manager also said that Coloplast, a healthcare company providing ostomy, continence, urology and wound care, also performed strongly, reporting robust growth in Brazil and China.
Syngenta was the principal detractor from returns over the period, after missing earnings estimates following a write-down in seed inventory and higher production costs in an environment of lower soft commodity prices.
However, the trust remains upbeat.
"We maintain our confidence in the company's yield-enhancing technology for farmers and its global reach," Alexander Darwall, fund manager, fund manager, Jupiter Asset Management Ltd.
Darwall also said CGG, the oil services company, also detracted from returns after reporting lower profitability than expected and booking an impairment charge relating to the decommissioning of vessels.
Darwall said net gearing, or borrowing, enhanced the trust's performance. Net gearing was 11%, amounting to GBP47.5 million at the end of the period.
Darwall said turnover was modest, while holdings in adidas were sold as the position in Dassault Systèmes was trimmed. The Novo Nordisk holding was added to.
"Our aim continues to be to try to identify companies that, in our view, have strong business models, provide differentiated products or services and, as dominant operators in niche areas, get well rewarded for doing so. For the most part, these businesses delivered strong profits in 2013," Darwall said.
"They tend to operate globally, including in emerging markets, as these economies continue to grow in significance, and we remain confident that our holdings are well placed to succeed in many of these markets."
The trust's shares were Tuesday quoted at 440.17 pence, up 0.2%.
By Samuel Agini; [email protected]; @samuelagini
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